The startup community believes that businesses need numerous employees for their development because this belief exists among most people. The history of successful companies demonstrates that their founders achieved success by working together as a small team. Small agile teams achieve work speed while making quick adjustments to their tasks because they build strong trust among team members which large organizations cannot achieve.
Speed of Decision-Making
A large organization requires five managerial levels to provide approval for a basic concept. The small team will complete their first project by lunch after they received their original breakfast idea. The market entry capability of startups enables them to achieve higher growth rates than their larger competitors.
High “Ownership” Culture
The company with four employees allows all workers to recognize who contributed which part of their work. The business environment requires employees to accept their accountability because no one can hide from their mistakes. The team functions through ownership which results in improved work quality and enhanced commitment to the organization’s goals.
Clear and Direct Communication
Big companies experience their communication systems first failure at the point of their organizational expansion. Small teams finish their tasks without requiring extended meeting time or extensive email communication. The team uses ongoing communication to keep everyone updated while reducing the chances of expensive mistakes.
Maximum Resourcefulness
Small teams become “scrappy” because their budget restrictions force them to work creatively. The team develops innovative solutions to problems because they need to explain their situation. The team shows resourcefulness through their product design process which results in them creating innovative solutions.
Deep Specialization and “Generalists”
At a small startup, employees must perform multiple job functions. Basic coding skills become available to designers. The business creates a “T-shaped” workforce model because every employee knows the complete business system which consists of all their assigned work duties.
Agility to “Pivot”
A small team can shift their product direction at any time when they discover their product has failed. The operation of a large corporation requires extreme work efforts because its employees must handle business direction changes like they would change the course of oil tankers through narrow canals. Small teams use market conditions to create immediate changes which they implement in their operational activities.
Lower Overheads
Small organizations achieve cost savings through their requirement of less office space and elimination of middle management and software license expenses. The company operates at a low “burn rate” which provides them with extended time to develop their profitable business model because they avoid facing immediate financial obligations.
Stronger Team Bonds
The “trenches” work environment, which requires direct collaboration with a small team, creates stronger trust relationships than what employees experience in corporate cubicle spaces. The team creates a safe space through their psychological safety which allows members to take risks while sharing their mistakes which supports their personal development.
Focus on the “Vital Few”
Big teams often get distracted by “nice-to-have” features. Small teams must concentrate on the most important tasks which lead to progress. The team focuses all its work efforts on achieving their crucial operational targets.
Direct Connection to Customers
The product developer in a small business fulfills both his product development and customer interaction responsibilities. The product system evolves through customer interactions because the design process depends on direct human contact with end users.
